Dear Seniors, Can you tell me about pf or ESIC deduction on bonus & leave encashment. Thanks & regards zainul
From India, Lucknow
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2From India, Lucknow
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Dear All, As per my knowledge we have to pay PF on leave encashment. We need not pay PF and ESI on Bonus (If it is statutory bonus). Regards, Raghav
From China
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From China
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Dear Zainul,
As per the Supreme Court decision dated 12.3.2008, PF is not applicable on leave encashment. For ESI, on Bonus is applicable if the bonus is related to productivity, attendance, etc., not in an annual bonus. Any component that comes in the payslip for more than 2 months will be applicable for ESI deduction.
Regards,
Sekar Devaraj
Dy Manager (HR)
Honeywell, Chennai.
From United States, Morristown
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As per the Supreme Court decision dated 12.3.2008, PF is not applicable on leave encashment. For ESI, on Bonus is applicable if the bonus is related to productivity, attendance, etc., not in an annual bonus. Any component that comes in the payslip for more than 2 months will be applicable for ESI deduction.
Regards,
Sekar Devaraj
Dy Manager (HR)
Honeywell, Chennai.
From United States, Morristown
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PF ESIC.xls
ESIC Press NoteDt 19 Sep 13.PF ALSOpdf.pdf